Required information The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information: Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth S $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Tons Mined $0 21,000 15,000 26,000 18,000 Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours on the horizontal axis utilities cost on the vertical axis. 0 24,000 31,000 -uctions: the graph below, use the point tool (Year 1-1st quarter) to plot direct labor-hours on the horizontal axis and utilities cost on Vertical axis. 3,000 6,000 36,000 34,000 epeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). o enter exact coordinates, click on the point and enter the values of x and y. remove a point from the graph, click on the point and select delete option. Direct Labor- Hours 5,600 3,600 4,600 6,600 Direct Labor-Hours 11,200 10,800 9,200 12, 200 reset Utilities Cost 9,000 12,000 15,000 18,000 $ 56,000 $ 51,000 $ 66,000 $ 81,000 $ 130,000 $ 135,000 $ 91,000 $ 132,000 O Year 1 - 1st quarter O Year 1-2nd quarter O Year 1-3rd quarter O Year 1-4th quarter O Year 2- 1st quarter O Year 2-2nd quarter O Year 2-3rd quarter O
Required information The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information: Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth S $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Tons Mined $0 21,000 15,000 26,000 18,000 Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours on the horizontal axis utilities cost on the vertical axis. 0 24,000 31,000 -uctions: the graph below, use the point tool (Year 1-1st quarter) to plot direct labor-hours on the horizontal axis and utilities cost on Vertical axis. 3,000 6,000 36,000 34,000 epeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). o enter exact coordinates, click on the point and enter the values of x and y. remove a point from the graph, click on the point and select delete option. Direct Labor- Hours 5,600 3,600 4,600 6,600 Direct Labor-Hours 11,200 10,800 9,200 12, 200 reset Utilities Cost 9,000 12,000 15,000 18,000 $ 56,000 $ 51,000 $ 66,000 $ 81,000 $ 130,000 $ 135,000 $ 91,000 $ 132,000 O Year 1 - 1st quarter O Year 1-2nd quarter O Year 1-3rd quarter O Year 1-4th quarter O Year 2- 1st quarter O Year 2-2nd quarter O Year 2-3rd quarter O
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Required information
The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes.
The company's cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that
correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost
formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost
analyst has decided to try both bases and has assembled the following information:
Quarter
Year 1:
First
Second
Third
Fourth
Year 2:
First
Second
Third
Fourth
|Y=
$140,000
$120,000
$100,000
69
$80,000
2-a. Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours on the horizontal axis
and utilities cost on the vertical axis.
$60,000
Instructions:
1. On the graph below, use the point tool (Year 1-1st quarter) to plot direct labor-hours on the horizontal axis and utilities cost on
the Vertical axis.
$40,000
Tons Mined
2. Repeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter).
3. To enter exact coordinates, click on the point and enter the values of x and y.
4. To remove a point from the graph, click on the point and select delete option.
$20,000
21,000
15,000
26,000
18,000
$0
24,000
31,000
36,000
34,000
0
Direct Labor-
Hours
Direct Labor-Hours
5,600
3,600
4,600
6,600
reset
11, 200
10,800
9,200
12, 200
3,000 6.000 9,000 12,000 15,000 18,000
X
Utilities Cost
$ 56,000
$ 51,000
$ 66,000
$ 81,000
$ 130,000
$ 135,000
$ 91,000
$ 132,000
Year 1 - 1st
quarter
Year 1 - 2nd
quarter
O
Year 1-3rd
quarter
O
Year 14th
quarter
O
Year 2- 1st
quarter
O
Year 2 - 2nd
quarter
2-b. Using the least-squares regression method, estimate the variable utilities cost per direct labor-hour and the total fixed utilities cost
per quarter. Express these estimates in the form Y= a +bX. (Round the Variable cost to 2 decimal places and Fixed Cost to the
nearest whole dollar amount.)
O
Year 2-3rd
quarter
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